The Department of Veterans Affairs (VA) Office of Inspector General (OIG) released a report bringing attention to overspending and a lack of oversight regarding two human resources conferences in Orlando, Florida, in the summer of 2011. The report found that planners allowed for $762,000 in unauthorized spending. In the wake of the report, Assistant Secretary for Human Resources and Administration for VA, John Sepulveda resigned. The report found, “VA’s processes and the oversight were too weak, ineffective, and in some instances, nonexistent to ensure that conference costs identified were accurate, appropriate, necessary, and reasonably priced. Accountability and controls were inadequate to ensure effective management and reporting of the dollars spent.”

OIG found VA spent $6.1 million on the conferences in July and August, an increase of $1 million from numbers previously reported by VA. Additionally, VA employees accepted improper gifts such as meals, limousine services, spa packages, and helicopter rides. And nearly $100,000 was spent on unnecessary promotional items such as pens, bags, water bottles, and exercise bands, all of which were determined as wasteful.

Following the report, Jeff Miller (R-Fla.), Chairman of the House Committee on Veterans’ Affairs, and Richard Burr (R-N.C.), Ranking Member of the Senate Committee on Veterans’ Affairs, wrote Secretary of VA Eric Shinseki commending the resignation of Sepulveda as well as two other employees placed on administrative leave. However, Representative Miller and Senator Burr also asked for the resignation of VA Chief of Staff John Gingrich. They cited, “...against the backdrop of the fiscal crisis our country is in, no one can conclude that the one-page document Mr. Gingrich signed to approve an $8 million budget...for the HR conferences was an exercise of ensuring ‘prudent control’ of taxpayer resources.” The letter concluded, “A message must be sent to all VA employees that perfunctory execution of so great a responsibility is inexcusable at any time, and at any level.”

For more information on OIG’s report, please visit: www.va.gov and www.veterans.house.gov.